FAQ: CARES Act Impact on Retirement Plans
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted in March, includes provisions related to special distribution options and rollover rules for retirement plans and IRAs. It also expands permissible loans from certain retirement plans.
To address taxpayers’ questions related to these new CARES Act provisions, the Internal Revenue Service (IRS) recently released an FAQ list that addresses “Coronavirus-related relief for retirement plans and IRAs questions and answers.” Questions include:
- What are the special rules for retirement plans and IRAs in section 2202 of the CARES Act?
- Am I a qualified individual for purposes of section 2202 of the CARES Act?
- What is a coronavirus-related distribution?
- When do I have to pay taxes on a coronavirus-related distribution?
- What plan loan relief is provided under section 2202 of the CARES Act?
You can find the answers to these questions and more in the IRS FAQ.